ConnectiCare reverses decision to leave exchange

A man leaves Access Health CT, Connecticut's health insurance exchange insurance store, in New Britain. Local insurance company ConnectiCare just announced that it could pull out of the exchange, leaving it without its largest insurer. less

A man leaves Access Health CT, Connecticut's health insurance exchange insurance store, in New Britain. Local insurance company ConnectiCare just announced that it could pull out of the exchange, leaving it ... more

Photo: Jessica Hill / AP Photo /Jessica Hill

Photo: Jessica Hill / AP Photo /Jessica Hill

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A man leaves Access Health CT, Connecticut's health insurance exchange insurance store, in New Britain. Local insurance company ConnectiCare just announced that it could pull out of the exchange, leaving it without its largest insurer. less

A man leaves Access Health CT, Connecticut's health insurance exchange insurance store, in New Britain. Local insurance company ConnectiCare just announced that it could pull out of the exchange, leaving it ... more

Photo: Jessica Hill / AP Photo /Jessica Hill

ConnectiCare reverses decision to leave exchange

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Days after declaring it would leave the state’s health insurance exchange, ConnectiCare has decided not to drop out of the marketplace, much to the relief of many — including Gov. Dannel P. Malloy.

“The decision made today by ConnectiCare is welcome news, as many Connecticut residents who depend on the carrier for their health care services will continue to benefit from their inclusion in the exchange,” Malloy said Tuesday in a statement.

On Monday, the state’s exchange, Access Health CT, released a statement from its CEO, Jim Wadleigh, and Lt. Gov. Nancy Wyman stating they’d received a letter from ConnectiCare announcing its intent to exit the exchange.

Exchanges where the uninsured can purchase plans, were sent up as part of the Affordable Care Act, also known as Obamacare. The possibility that ConnectiCare would leave the exchange was unsettling to many, as it would have left only one plan, Anthem Blue Cross Blue Shield, in the marketplace.

Two other insurers — United Healthcare and HealthyCT — had already dropped out for financial reasons.

ConnectiCare’s initial decision to leave the exchange followed a lawsuit filed by the company against the state over the recently approved insurance rates for 2017.

ConnectiCare, which insures 47,597 people through the exchange, originally requested a hike of 14.3 percent for such plans. In June, the company changed its request to a 17.4 percent increase, then changed it again in August, asking for a 27.1 percent increase

The state ultimately approved an increase of 17.4 percent. ConnectiCare sought an injunction that would vacate the ruling, but last week, a New Britain judge denied the request. The company planned to continue appealing the state’s decision but, on Tuesday afternoon, it seemed to have abandoned that mission, and declared in a statement that it was staying on the exchange.

“After hearing from state officials, providers and beneficiaries about the importance of our plan to Connecticut, we have decided to move forward into 2017 as a plan on the exchange at the rates approved by the (state insurance) department,” ConnectiCare President and CEO Michael Wise said in the statement. “To that end, we have withdrawn our legal appeals with the courts and the department, and we have sent a letter to the exchange rescinding the termination notice that we sent to them on Friday.”

Some were pleased, if confused, by ConnectiCare’s decision to stick around, including Matthew Katz, executive vice president and CEO of the Connecticut State Medical Society, which claims membership of about 7,000 physicians.

“Well, God bless ’em, I guess,” Katz said. “It is a good thing that we have more, not less insurers on the exchange, so that consumers have more choices.”

On Tuesday, before ConnectiCare reversed its decision, he had expressed concern that the company’s departure could mean the end of the exchange.

“That is the number one question — are the exchanges healthy enough to survive?” Katz said. “And I don’t think there’s a definitive answer.”

The possible loss of ConnectiCare was particularly disconcerting given other recent developments, including the decision in August by Hartford-based insurance giant Aetna to pull out of most of the health exchanges of which it was a member, citing costs.

Access Health officials, meanwhile, were also grateful that ConnectiCare is staying.

“We are very happy to hear that ConnectiCare will remain part of the exchange for 2017, providing plans and options that allow individuals and families get access to quality care; this is great news,” Wadleigh said in a statement. “The more choices we have to offer our customers, the better off they will be.”